Why the 7Big Wins represent succour needed by oil/gas industry to thrive

Industry experts and operators have disclosed the policy document as typified by the 7Big Wins if allowed to function effectively by both government and other stakeholders may be the succour that the oil and gas industry need to thrive.

In their views, Government must get the framework right if it intends to come out of this recession. Although, there has been sterling efforts at diversifying the Nigerian economy, it is clear that our budget will continue to be funded either by our receipts from the oil & gas sector or from external borrowings.

Industry analysts observe that to comply with global best practices, government through the 7 BigWins document is determined to introduce transparent licensing rounds, bidding information, fiscal obligations, improved Capacity

Building, Institutional Strengthening and Governance Model, Information Communication Technology & Automation, and Performance Management.

Tolulope Aderemi an energy expert observes that these reforms were designed with a view to improving transparency, efficiency, and government take from the industry. Furthermore, the National Oil Policy is expected to establish a

Single Independent Industry Regulator, conduct new licensing rounds, timely lease renewals and the negotiation of new funding options for government.

Government also intends to sponsor the passage of a Petroleum Fiscal Reform Bill, which is expected to change the Fiscal landscape of the industry.

Aderemi said the Nigerian Gas MasterPlan; a robust gas framework for doing business in the Nigerian gas sub-sector is yet to be to be fully implemented.

This obviously has affected full implementation of her domestic obligation rule re-introduction, the introduction of its transitional pricing framework, full commerciality in Domestic gas prices (export parity), Infrastructure Investment progressing etc. Undoubtedly, with a gas revolution under this administration, it is anticipated that there will be improved Gas Infrastructure Development.

According to him, “Creating an enabling environment therefore commends itself to attracting both foreign and local investors. One can only hope that this RoadMap is not just another well-intentioned Plan but one which will deliver the promises of a vibrant and robust oil and gas market”.

Industry close watchers are of the views that this Policy document establishes improved transparency, efficiency and a stable investment climate which is the panacea to a stable and profitable oil and gas market. The proposed reform is also expected to identify investment opportunities in infrastructure development of oil & gas facilities, operations, and maintenance across the oil & gas industry.

“Projects, promotion of Domestic Utilisation of LPG and CNG, Reduction of Gas Flaring, Gas Commercial Framework Implementation and improved Gas to Power; Encourage Transparency and Efficiency: Government is committed to improving governance and transparency across the oil and gas value chain via increased collaboration with the Nigeria Extractive Industries Transparency Initiative. This would help strengthen governance and accountability in the industry. Under the new regime, oil companies may be required to disclose more details of their operations and financials,” they said.

They reasoned that Niger-Delta, Nigeria’s oil & gas hub, has recorded violence resulting in massive destruction of oil assets. Successive governments have in turn also attempted to reduce the impact of this vandalism on the Nation’s revenue stream by making palliative provisions to accommodate some of the vandal’s concerns.

KELECHI EWUZIE